Strategy to Understand your Competitor
Who are You playing against:
* Do you know your competition?
* If not, do you want to know?
Many entrepreneurs are clueless about what the competition is doing out there and fail to position themselves to deal with them.
Know everything you can about what others are doing.
Principle 6-1: Knowing Your Competition Is a Key to Business Success
The more you understand about the playing field in your industry, the more likely you will do well in your business. By knowing your competition, you will learn from their mistakes as well as mirror their successes… in your own way.
Contrary to popular opinion, having competition is a good thing! Starting a new type of company, or launching a new product or service that has never been done before sounds really exciting but is nothing but a huge headache.
If you do have a “first of its kind” product or service (I launched two so far in my life), be wary of this: if you don’t go bankrupt trying to shift people’s mindsets, you might go insane. In order avoid either, look for ways to piggyback off existing industries and/or products/services that will ease the transition into your “new” product, service or concept.
Most of us know of WalMart, yet not too many know of the story behind it. Sam Walton created it back in the 1950’s when discounting in retail was not common at all.
In fact, the biggest company at that time was K-Mart. Walton made it his passion to know everything possible about K-Mart. In fact, he knew more about K-Mart than K-Mart knew about K-Mart.
And by the time K-Mart had even heard of WalMart, Walton had over 100 stores. By that time, in the 1960s, it was too late for K-Mart to keep up.
Yes, competition is good.
Question #1: What are the two types of competition?
* Primary competition—businesses that directly compete with your products and services (i.e.: WalMart and K-Mart)
* Secondary competition—businesses that are not directly competing but there is some overlap (i.e. WalMart and a lighting store)
Question #2: Why should you learn to love your competition?
* You don't need to reinvent the wheel
* Learn from your competition’s mistakes
* Tap into your competition’s already existing market share
Question #3: "What if I have no competition?"
Your market is too narrow. Open your product/service to wider market.
Affirmation #4 will be the result of knowing and beating your competition. Repeat it 10+ times:
I have an abundance of wealth coming through my company!
Action Steps for the Day 1 ˝ - 2 hrs.
Exercise 6-1: Who Are Your Primary Competitors?
Who are your top competitors?
Where would your customers go if they either didn’t know about you or you didn’t exist? List at least three.
Next: How are you better and/or different? If you are the same, how can you explain it differently?